Any advice on why the SP keeps rising while the dividend is locked in at value 5.37 (advising disc.of 2%)?
Expecting SP to drop on issue of div. being a time I want to take more! Am I presuming wrong?
There's a lot more influencing the shareprice than just the divvy. Market sentiment towards retirement villages is strong at present with MET's optimistic outlook; RYM's proposed new Mt Roskill development just the latest in the news.
There's a lot more influencing the shareprice than just the divvy. Market sentiment towards retirement villages is strong at present with MET's optimistic outlook; RYM's proposed new Mt Roskill development just the latest in the news.
Cheers, and true. Been into them several years. However, They had a good steady healthy incline since March, then August it ran-away, spiking, which looked really suss, (risky), to then flatten out around 5.50. The company says their value is 5.37 ! Is this about people jumping on to collect the div. ...but is it not too late for current new buyers to be in for div? If passed the time their buys can collect div. then why is it going up at present? Will there not be a sell-off, drop in SP, after people have collected their div's as frequently happens? I wonder that the spike points to a bit of splattering on the pavement to come soon?
Cheers, and true. Been into them several years. However, They had a good steady healthy incline since March, then August it ran-away, spiking, which looked really suss, (risky), to then flatten out around 5.50. The company says their value is 5.37 ! Is this about people jumping on to collect the div. ...but is it not too late for current new buyers to be in for div? If passed the time their buys can collect div. then why is it going up at present? Will there not be a sell-off, drop in SP, after people have collected their div's as frequently happens? I wonder that the spike points to a bit of splattering on the pavement to come soon?
Cheers, and true. Been into them several years. However, They had a good steady healthy incline since March, then August it ran-away, spiking, which looked really suss, (risky), to then flatten out around 5.50. The company says their value is 5.37 ! Is this about people jumping on to collect the div. ...but is it not too late for current new buyers to be in for div? If passed the time their buys can collect div. then why is it going up at present? Will there not be a sell-off, drop in SP, after people have collected their div's as frequently happens? I wonder that the spike points to a bit of splattering on the pavement to come soon?
I think the risk with this sector is less than the likely reward. Looking forward they will be even bigger and more refined operations. It sure isn't attractive to stick money into a bank term deposit or for most, investing in the housing market is not possible at all without some steady increases in another asset. Still not over valued from a long term perspective. I have bought additional on the uptrend and it has been good returns so far. I agree with Winner69, Christmas this year looks nice and jolly.
Just have a look at a longer term chart ....give you comfort about the future.
SUM be over $6 by xmas / early next year
Yes, whole market is moving up, SUM is being carried along... good news for those looking for better value: ARV getting proportionally cheaper by the day while SUM and RYM continue competing in what seems to be a never ending running race to an unkown finish line (not a bad thing!)
Any advice on why the SP keeps rising while the dividend is locked in at value 5.37 (advising disc.of 2%)?
Expecting SP to drop on issue of div. being a time I want to take more! Am I presuming wrong?
Technically this should only drop the price by the amount of the dividend (3 cents?). But when the share price is undervalued, the share going ex dividend isn't going to stop upward pressure when theres lots of buyers there still buying.
There are strong fundamental drivers for this stock as highlighted in my post above.
From what I've gathered, the DCF models used by the brokers assume house price appreciation of 4% per annum. The sensitivity is +1% = +$1.50, so that's a huge effect. I can't see house price appreciation dropping below 5% for the next few years, so at $5.60, this is still undervalued, and I think $6.50 - $7 is fair value.
Agree, massive house price increases right around the country in all popular locations. ~70,000 migrants a year means house prices only go one way from here.
Huge embedded value in SUM and build rate going up. Has 7 years land supply to fuel further growth...have the other retirement sector companies got 7 years land supply locked in ?
Agree, massive house price increases right around the country in all popular locations. ~70,000 migrants a year means house prices only go one way from here.
Huge embedded value in SUM and build rate going up. Has 7 years land supply to fuel further growth...have the other retirement sector companies got 7 years land supply locked in ?
Doesn't surprise me in the slightest. Company has geared up to take advantage of an extremely buoyant market and dramatically increase their build rate. Embedded value is going through the roof with rampant house price increseses in Auckland and other popular retirement locations. Plenty more legs in this one.
Originally Posted by jim9358
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